Bitcoin valuation has recently navigated a period of pronounced indecision, oscillating within a narrow range primarily between $108.000 and $112.000. Despite multiple attempts, the cryptocurrency has faced persistent rejections at the $112.000 threshold, while critical technical indicators, notably the 200-day moving averages on the four-hour chart, signal considerable overhead resistance.
Crypto analyst Daan Crypto Trades has articulated a compelling bear case, suggesting that Bitcoin faces a palpable risk of declining below the significant $100.000 mark. In a recent update shared on X, the analyst highlighted that current price action leans towards a “sweep of the monthly lows.” The four-hour candlestick chart reveals Bitcoin’s price has established a discernible range since August 25, characterized by “equal lows” forming a precarious support around $107.000. This configuration suggests that a liquidity sweep beneath this level is an increasingly probable short-term outcome.
Such a downward movement, the analyst postulates, could precipitate a wave of market apprehension, potentially fueling fears of a more substantial decline below the $100.000 psychological benchmark. However, Daan Crypto also pinpointed the $103.000 to $105.000 zone as a crucial support confluence where institutional and retail buyers might step in. This range is further identified as a logical entry point for “swing long” positions should the price indeed breach the $107.000 level.
Conditions for a Bullish Reversal
Despite the outlined bearish pressures, the analyst presented clear pathways for Bitcoin bulls to avert a deeper correction. Preventing a breakdown below the $100.000 threshold largely hinges on maintaining support above the $103.000 to $105.000 range.
A more definitive bullish resurgence would necessitate two primary conditions. Firstly, a decisive break and sustained close above $115.000 would invalidate much of the prevailing short-term bearish momentum. This level represents the low of August’s trading range, which has since transitioned into a key resistance point.
Secondly, and perhaps the most optimistic scenario, involves a swift liquidity grab below the current monthly lows at $107.000, immediately followed by a robust reclaim of both the $107.000 and $112.000 levels. This “quick sweep and reclaim” pattern, according to the analyst, could set the stage for a sustained uptrend extending for one to two months, potentially throughout October and November.
As of the latest market data, Bitcoin trades at approximately $111.733, marking a modest 0,7% gain over the past 24 hours. The immediate future for the digital asset remains contingent on how market participants react to these pivotal technical thresholds.
Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Investors should always conduct their own thorough research and consult with a qualified financial advisor before making any investment decisions in cryptocurrencies, which are highly volatile and speculative assets.
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